Mitsubishi Strikes Atonement Deal With DaimlerChrysler
Thread Starter
Evolved Member
iTrader: (56)
Joined: Sep 2004
Posts: 11,132
Likes: 1
From: Western NY
Date Posted 03-10-2005
TOKYO, Japan — Mitsubishi Motors has settled with DaimlerChrysler on compensation for the costly defect cover-up and recall scandal at Mitsubishi Motors' Fuso Truck and Bus Corp. truck unit.
The deal includes an undisclosed cash payment and the transfer of Mitsubishi Motors' 20-percent stake in Fuso to DaimlerChrysler, giving it 85 percent of Fuso. DaimlerChrysler last year stopped bailing out the troubled Japanese company and has withdrawn from collaboration projects. Reuters reported the settlement was worth around $670 million, more than enough to compensate DaimlerChrysler for the charges it took last year for costs from the scandal at Fuso.
DaimlerChrysler was upset that disclosures about a systematic cover-up of auto defects emerged after it took a stake in both Mitsubishi's car and its truck unit. The wrongdoing was first disclosed in 2000.
Fuso, spun off from Mitsubishi in 2003, has had to recall more than 950,000 vehicles since admitting it hid information on defects from authorities for years in what DaimlerChrysler has condemned as a "corporate culture of concealment."
What this means to you: DaimlerChrysler's global expansion has been costly. This deal will soften the blow.
http://www.edmunds.com/insideline/do...ticleId=104946
TOKYO, Japan — Mitsubishi Motors has settled with DaimlerChrysler on compensation for the costly defect cover-up and recall scandal at Mitsubishi Motors' Fuso Truck and Bus Corp. truck unit.
The deal includes an undisclosed cash payment and the transfer of Mitsubishi Motors' 20-percent stake in Fuso to DaimlerChrysler, giving it 85 percent of Fuso. DaimlerChrysler last year stopped bailing out the troubled Japanese company and has withdrawn from collaboration projects. Reuters reported the settlement was worth around $670 million, more than enough to compensate DaimlerChrysler for the charges it took last year for costs from the scandal at Fuso.
DaimlerChrysler was upset that disclosures about a systematic cover-up of auto defects emerged after it took a stake in both Mitsubishi's car and its truck unit. The wrongdoing was first disclosed in 2000.
Fuso, spun off from Mitsubishi in 2003, has had to recall more than 950,000 vehicles since admitting it hid information on defects from authorities for years in what DaimlerChrysler has condemned as a "corporate culture of concealment."
What this means to you: DaimlerChrysler's global expansion has been costly. This deal will soften the blow.
http://www.edmunds.com/insideline/do...ticleId=104946
